Matrixport offers over-the-counter cash trading, fixed income products, structured products, lending and borrowing and asset management services. The company claims $ 10 billion in assets under management and custody, with $ 5 billion in average monthly transaction volumes.
Founded in February 2019 by Bitmain co-founders Jihan Wu and Ge Yuesheng, Matrixport is a one-stop-shop for digital asset financial services. The company claims $ 10 billion in assets under management and custody, with $ 5 billion in average monthly transaction volumes. Matrixport offers over-the-counter cash trading, fixed income products, structured products, lending and borrowing and asset management services.
As the bitcoin mining industry has grown, so has the need for financial services in the sector. Miners needed downside protection, secured loans for working capital, and other ways to run their businesses. Much like farmers who use agricultural commodity futures to hedge their market risk, bitcoin miners needed services to help them deal with the intricacies of running a mining farm.
“In 2018, the main financial platforms available in the sector were exchanges and wallets. We felt that exchanges cannot meet all customer needs, ”said John Ge, CEO of Matrixport.
“Matrixport was created because we believe that everyone should have the opportunity to get the most out of crypto beyond just buying, holding or selling. This next-generation digital financial services platform plans to serve the next billion crypto users, not just early adopters. “
Creating an account on a decentralized exchange is quite simple. No ID is required, just register and you are good to go.
But using the services, researching yield, moving funds, and figuring out how to get the most out of all the DeFi protocols available… that’s another story.
Matrixport has come up with an ingenious solution. They call it “Ce-DeFi” or centralized DeFi. This type of service is simply “a centralized way to earn returns, but the returns come from DeFi,” according to Ge.
Ce-DeFi services allow the average user to get the most out of their crypto without having to navigate through a wide range of decentralized financial protocols.
As anyone who has tried yield farming may know, trying to figure out where to find maximum yields is “very long, if not impossible,” he noted.
Fortunately, those who use Matrixport can take a lot of the hassle out of the way. “You don’t need to deal with MetaMask, interact with various DeFi protocols, manage operations… you just click and leave the rest to us… As a user, you delegate all of these tasks… to us. let’s call it DeFi intelligence because it’s a smart way to help users maximize their performance over many DeFi protocols.
The service offers all the benefits of DeFi without the hassle.
Innovation in crypto-finance
One of the most innovative products offered by Matrixport, and perhaps anyone in the industry, is the “Dual Currency” investment product. Launched in October 2019, it is the first structured product offering an attractive return to investors.
Here is an example :
Someone writes a covered bitcoin call that expires in eight days. The strike price could be $ 40,000 per bitcoin compared to the current price of $ 35,000 per bitcoin. If the price stays below $ 40,000 upon expiration, the caller would continue to hold his bitcoin and earn interest on the bitcoin (much like he might earn a premium with traditional options). If the price exceeds $ 40,000 at or before expiration, the caller will have their bitcoin withdrawn (they will be forced to sell) but will still receive interest, settled in USDC.
This type of option is standard in the world of traditional finance. In the world of crypto finance, however, the ability to write a covered call in this automated manner is revolutionary.
Note that writing a covered call of any kind requires possession of the underlying asset. And in the case of this dual currency product offered by Matrixport, the premium earned on the option will be paid in BTC or USDC, depending on the outcome of the option.
Matrixport recently introduced its new ‘Lite’ version interface on its app aimed at improving the customer experience for those who have recently embarked on their crypto investing journey. The launch reflects the company’s continued commitment to making crypto easy for everyone as part of its global rollout.
According to Ge, “Digital assets have seen incredible growth to date, but without easy-to-use tools, many potential investors are left behind. Through customer-centric product design, we lower barriers to entry to welcome the next billion users. “